Understanding Debt: Part 2

When it comes to really understanding your debts, the second most important distinction comes in how your debts are paid back. Secured debts and unsecured debts are paid back on very different payment schedules. This difference in how the payment schedule is calculated has a big impact as you are deciding which debts you should focus on when you need to reduce your debt burden.

If you need help developing an effective strategy for reducing debt, a trained credit

counsellor has the expertise to provide the assistance you need. To speak with a credit counsellor today, please call Consolidated Credit at or get started online with a request for a Free Debt Analysis.

Installment Debt versus Revolving Debt

A secured debt is typically paid on an installment payment schedule.This means the amount you pay each month is fixed and does not change regardless of how much you owe. This makes it easier to factor secured debt payments into your household budget, because you know exactly what you will be required to pay each month.

By contrast, unsecured debts are usually paid on a revolving payment schedule. This means the amount you are required to pay each month changes based on how much you owe. The creditor or lender uses an assigned formula to calculate your minimum monthly payment based on your current balance. The more you buy on credit, the higher your credit card bills will be at the end of the month.

This makes revolving debts more difficult to factor into your budget, because the amount you owe varies. However, it also makes these kinds of debts good candidates for a debt reduction strategy if you are trying to reduce debt on your own. If you can reduce your balances, you decrease the amount of your income you must reserve for making debt payments each month. This will provide financial relief if you are struggling to make a budget work at your current income level. Reducing credit card debt is the easiest way to fix problems you may be having with an upside down debt to income ratio.

Paying More than the Minimums on Your Revolving Debts

Even if you are not facing financial distress now, maintaining a healthy amount of debt for your income level will help you avoid hardship even if there is a change in your employment. To do this, you may wish to pay more than the minimum payment requirements on your credit cards. As you decide the most efficient way to pay off credit card debt, arranging an installment payment schedule where you pay a fixed amount each month will typically minimize the interest and the amount of time it takes to pay your debts off.

If you evaluate your debts and reach a conclusion that you will not be able to payback everything you owe in an efficient way, it may be time to seek help. Call Consolidated Credit today at to speak with a trained credit counsellor. If you prefer to get started online now, you can fill out a request for a Free Debt Analysis and a counsellor will contact you soon.

Have a financial question?

Our team of experts has the answers you need.

Enter Question Here

Name

Email

City

Province

We take your privacy seriously. By submitting your information above you consent by electronic signature to: receive calls from Consolidated Credit from a live agent, artificial or prerecorded voice, and/or SMS text (standard cellular rates may apply) at my residential or cellular number, dialed manually or by autodialer. I understand that I am under no obligation to purchase anything.

GoDaddy Verified Website

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Open popup window about the Toronto Board of Trade.

Open popup window about the accreditation by the Canadian Centre for Accreditation

Consolidated Credit Carries an A+ rating by the Better Business Bureau

Open popup window about: We are proud members of the Ontario Association of Credit Counseling Services (OACCS).

Share Your Own Personal Debt Story Today!

Tell us a little about your story below. Explain what caused your challenges with debt and what solution you used to overcome them. We may contact you for an interview to get the full story if we decide to publish your story here to help others in similar situations!

We take your privacy seriously. By submitting your information above you consent by electronic signature to: receive calls from Consolidated Credit from a live agent, artificial or prerecorded voice, and/or SMS text (standard cellular rates may apply) at my residential or cellular number, dialed manually or by autodialer. I understand that I am under no obligation to purchase anything.

GoDaddy Verified Website

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Open popup window about the Toronto Board of Trade.

Open popup window about the accreditation by the Canadian Centre for Accreditation

Consolidated Credit Carries an A+ rating by the Better Business Bureau

Open popup window about: We are proud members of the Ontario Association of Credit Counseling Services (OACCS).

Request a free, confidential evaluation with a certified credit counselor

Thank you for your application!

Open popup window about our GoDaddy verification as valid business and owner of www.ConsolidatedCredit.org

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Consolidated Credit has helped over 6.5 million people find relief from debt. Now we're here to help you.

A Certified Credit Counselor will be calling you at the number you provided. They'll complete your free debt and budget analysis, then discuss the best options for getting out of debt with you. If you qualify to enroll in a debt management program, your counselor can also help you enroll immediately.

I consent to receive electronic messages via email and to my mobile device from Consolidated Credit regarding products and services (including tips, newsletter and promotions). You can withdraw your consent at any time.

We take your privacy seriously. By submitting your information above you consent by electronic signature to: receive calls from Consolidated Credit from a live agent, artificial or prerecorded voice, and/or SMS text (standard cellular rates may apply) at my residential or cellular number, dialed manually or by autodialer. I understand that I am under no obligation to purchase anything.

GoDaddy Verified Website

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Open popup window about the Toronto Board of Trade.

Open popup window about the accreditation by the Canadian Centre for Accreditation

Consolidated Credit Carries an A+ rating by the Better Business Bureau

Open popup window about: We are proud members of the Ontario Association of Credit Counseling Services (OACCS).

Get a Personalized Housing Consultation Today!

Get a personal one-on-one housing counseling session with one of our U.S. HUD certified housing counselors.

Consolidated Credit Carries an A+ rating by the Better Business Bureau

We have an excellent EIFLE rating

First Name

Last Name

Email

State

Phone

Alt Phone

Best time to call

Preferred Language

We take your privacy seriously. By submitting your information above you consent by electronic signature to: receive calls from Consolidated Credit from a live agent, artificial or prerecorded voice, and/or SMS text (standard cellular rates may apply) at my residential or cellular number, dialed manually or by autodialer. I understand that I am under no obligation to purchase anything.

GoDaddy Verified Website

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Open popup window about the Toronto Board of Trade.

Open popup window about the accreditation by the Canadian Centre for Accreditation

Consolidated Credit Carries an A+ rating by the Better Business Bureau

Open popup window about: We are proud members of the Ontario Association of Credit Counseling Services (OACCS).

Get a Personalized Housing Consultation Today!

Get a personal one-on-one housing counseling session with one of our U.S. HUD certified housing counselors.

Consolidated Credit Carries an A+ rating by the Better Business Bureau

We have an excellent EIFLE rating

First Name

Last Name

Email

Phone

Alt Phone

State

Time to call

Preferred Language

Address Information

Address

Address 2

City

State

Zip Code

County

Housing Information

Home Value

Mortgage Balance

Years Living at Property

Are you working with a lender?

If you answered “Yes” above, please fill out the next 3 questions as well

Company / Lender Name

Loan Officer / Broker Name

Lender / Loan Officer Phone Number

Special Notes or Special Request

We take your privacy seriously. By submitting your information above you consent by electronic signature to: receive calls from Consolidated Credit from a live agent, artificial or prerecorded voice, and/or SMS text (standard cellular rates may apply) at my residential or cellular number, dialed manually or by autodialer. I understand that I am under no obligation to purchase anything.

GoDaddy Verified Website

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Open popup window about the Toronto Board of Trade.

Open popup window about the accreditation by the Canadian Centre for Accreditation

Consolidated Credit Carries an A+ rating by the Better Business Bureau

Open popup window about: We are proud members of the Ontario Association of Credit Counseling Services (OACCS).

Register for this Seminar

After registering, you will receive a confirmation email.

Thanks for Registering!

You should receive email confirmation shortly.

Open popup window about our GoDaddy verification as valid business and owner of www.ConsolidatedCredit.org

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Name

Date

Just as a reminder, the workshop will be held at our home office in Fort Lauderdale, FL.

5701 West Sunrise Blvd. Fort Lauderdale, FL 33313

If you have any questions about the workshop or need more information, don't hesitate to call us at 954-377-9167.

First Name

Last Name

Phone

Email Address

*Please check your Spam folder for the confirmation email after you register*

We take your privacy seriously. By submitting your information above you consent by electronic signature to: receive calls from Consolidated Credit from a live agent, artificial or prerecorded voice, and/or SMS text (standard cellular rates may apply) at my residential or cellular number, dialed manually or by autodialer. I understand that I am under no obligation to purchase anything.

GoDaddy Verified Website

Open popup window about Canadian Association of Credit Counselling Services (CACCS)

Open popup window about the Toronto Board of Trade.

Open popup window about the accreditation by the Canadian Centre for Accreditation

Consolidated Credit Carries an A+ rating by the Better Business Bureau

Open popup window about: We are proud members of the Ontario Association of Credit Counseling Services (OACCS).